GREEN PAPER

Skills Development Strategy for
Economic and Employment Growth in South Africa

Department of Labour

March 1997

TABLE OF CONTENTS

FOREWARD

This Green Paper: "A Skills Development Strategy for Economic and Employment Growth in South Africa" is presented to you for your comments and recommendations.We invite you to consider the detailed proposals made and also urge you to enter the spirit in which this Green Paper was drafted. It aims to set in motion a skills revolution in our country and nothing less than a revolution will suffice when one considers the urgent need for employment and productivity growth in our country. This Strategy does not claim the development of skills on its own will achieve these outcomes, but it does argue that skilled people are a fundamentally necessary part of any economic and employment growth strategy, and that re-establishing the linkages between learning and working is a condition for growth.

It represents the culmination of years of discussion and work within the Department of Labour as well as between the social partners in the National Training Board and in Industry Training Boards. The work has progressed through many significant phases, most notably the publication of the National Training Strategy Initiative in April 1994; the work of the Inter-Ministerial Committee, jointly appointed by Minister Bengu and myself, which culminated in the South African Qualifications Authority Act in October 1995; and in the draft Green Paper prepared at my request by the National Training Board together with the Department of Labour in September 1996.

The Draft Green Paper which was presented to me in September 1996 consolidated the outcomes of two parallel processes. The first was a series of four strategic workshops which were convened by the Department of Labour's Chief Directorate: Human Resources Development and Employment Services and included Industry Training Boards, Government departments as well as NGOs. These took place between November 1995 and September 1996, and culminated in a lekgotla in September 1996 attended by all five National Training Board constituencies, namely government, organised business, organised labour federations, representative provider organisations and community representatives. These constituencies considered the Draft prepared by the Department and gave it their "in principle" support, whilst allowing for further discussion on detailed aspects of the Strategy.

The second process which contributed to the Draft Green Paper was that which took place under the NEDLAC umbrella. A Counterpart Group made up of key stakeholders was established to commission research into different options for the financing of training and to make recommendations on a sustainable funding system for training in South Africa.

I take this opportunity to thank everyone who has contributed their time and energy to this extensive consultative process. I am convinced that it has immeasurably contributed to the quality of this present document.

When the Draft Green Paper was presented to us, we agreed with the principles and substance of the proposals but were nonetheless concerned about the complexity of some of the institutional and financial arrangements suggested. This Green Paper simplifies the original proposals. There has also been substantial work on an implementation plan for the strategy which was a necessary pre-condition for the publication of this document.

The success of this Skills Development Strategy depends on the active participation and commitment of all stakeholders. We are hopeful that within these pages lies the foundation on which this participation and commitment can be built. We are ready to dedicate our time and resources to its success - we hope that we will be able to build an effective partnership in this critical venture.

T T MBOWENI, MP
MINISTER OF LABOUR

March 1997

INVITATION FOR RESPONDING TO THE GREEN PAPER: A SKILLS DEVELOPMENT STRATEGY FOR ECONOMIC AND EMPLOYMENT GROWTH IN SOUTII AFRICA

The public is kindly invited to respond to the Green Paper: A Skills Development Strategy for Economic and Employment Growth in South Africa. Written responses should reach the Department of Labour at the address below not later than 30 April 1997.

Written comments on the Green Paper should be sent to:

The meaning of the term "Skills" as used in this Green Paper

Earlier drafts of this document were referred to as "An Integrated Human Resources Development Strategy". However, since the term human resources development embraces the work of many other government departments and social actors - most importantly the work of the Departments of Education, Health and Welfare, the term "skills development" has been used to capture the specific perspective that the Department of Labour brings to the project of people development.

This perspective emphasises the development of competent performance by an individual or a specified and yet dynamic social or economic purpose. It is not intended to be seen as preparing individuals for the isolated performance of a routine task in an unchanging environment - a very outdated notion - but rather the development of the necessary competences which can be expertly applied in a particular context for a defined purpose. Skills development should result in skilled performance such as is traditionally associated with the work of"skilled craft workers", "skilled managers" and "skilled professionals".

The recent publication of the Phase 2 report of the Education, Training and Development Practices Project under the National Training Board defines "applied competence" in a way which this Green Paper believes skill should also be understood:

"Applied competence is the overarching term for three kinds of competence:

  • Practical competence:
    Our demonstrated ability to perform a set of tasks
  • Foundational competence:
    Our demonstrated understanding of what we or others are doing and why
  • Reflexive competence:
    Our demonstrated ability to integrate or connect our performances with our understanding of those performances so that we learn from our actions and are able to adapt to changes and unforeseen circumstances. "(1)

This broad understanding of applied competence or skills is essential in a rapidly changing world where tasks seldom stay the same and where the adaptability of people to new demands and opportunities is as fundamental to employment or income security as it is to growth. A learning nation, just as any learning organisation, has to be made up of people with all three kinds of competence, capable of reflecting on their current performance in order to continually improve it.

1Final Report: ETD Practices Project Phase 2: Systems Building p. 106, February 1997.

EXECUTIVE SUMMARY

WHY A NATIONAL SKILLS DEVELOPMENT STRATEGY?

The people of South Africa are our country's most important asset. If all South Africans are to meaningfully participate in economic and social development as well as their own advancement, they must not only have general capabilities such as the ability to read and write, to communicate effectively and to solve problems in their homes, communities and in the workplace. But, given the demands of a more complex and changing economy, characterized by increasing use of information, more complex technologies and a general rise in the skill requirements of jobs, people must also have rising levels of applied competence. The focus on skills development in this Green Paper is about this process of deepening individuals' specialised capabilities in order that they are able to access incomes through formal sector jobs, through small micro enterprises (SMEs) or community projects which in turn positively contribute to the economic success and social development of our country. This learning process must also enable people to continue learning and adapting to the constantly changing environment.

This Green Paper proposes a new approach to skills development which compliments the formal education system. It links skill formation to the requirements of a growing economy and extends education and training to people both within and outside formal employment. It is primarily concerned with industry-based training, improving the intermediate level skills base of the country and labour market training for target groups (including the unemployed, retrenched workers, youth, women, people with disabilities and people in rural areas).

The Skills Development Strategy makes provision for a new system of learning, refered to as learnerships, for young and unemployed people wishing to join the labour market. Learnerships combine structured learning and work experience and culminate in nationally recognised qualifications which signify job readiness. While the initial focus will be on intermediate level skills development, integration with the education reforms driven by the Minister of Education will promote coherence between intermediate and higher level skills development. A new approach to Employment Services will ensure that beneficiaries are informed of these and other opportunities.

The strategy locates the approach to skills development within a broader policy context and will be guided by national priorities. It relates to macro-economic, industrial, labour market, and science and technology policies. Implementation of the strategy will be supported by proposals for effective coordination at national level as well as a consolidated set of sectoral training intermediaries which will support enterprise, pre-employment and target group education and training.

VISION, CORE STRATEGY, PRINCIPLES AND OBJECTIVES

The overall vision is an integrated skills development system which promotes economic and employment growth and social development through a focus on education, training and employment services. The Skills Development Strategy is an integral part of the government's commitment to overall human resource development which includes education reform and the transformation of health and welfare services.

The core strategy is to create an enabling environment for expanded strategic investment in skills development.

The following principles underpin this new system:

The objectives of the strategy are:

In relation to the country as a whole:

in order that the country achieves rising competency levels which promote economic and employment growth and social development.

In relation to industry:

in order that workers achieve nationally recognised qualifications and are able to assume increased independence and responsibility, and employers achieve rising levels of productivity and competitiveness.

In relation to target groups:

in order that the people that are most vulnerable in the labour market, including those in micro enterprises, are able to enter and successfully remain in employment/self employment and enjoy a rising standard of living.

CORE COMPONENTS OF THE NEW STRATEGY

There are six core components in the proposed strategy:

1 Information for Strategic Planning

(elaborated in Chapter 3)

The collection, analysis and dissemination of information on labour market trends and work opportunities and their implications for skills development is essential if investments in education and training by government and the private sector are to improve. The responsibility for generating this information will be a partnership between the proposed National Skills Authority, Sector Education and Training Organisations the Department of Labour and other government departments and agencies responsible for data collection as well as labour market and industrial research and analysis.

2 A System of Learnerships

(elaborated in Chapter 4)

Learnerships are proposed as a mechanism to facilitate the linkage between structured learning and work experience in order to obtain a registered qualification which signifies work readiness. Learnerships directly address the "how" of the skills development strategy. They are intended to overcome the present divide between theoretical education and skills training and will depend on close cooperation between government departments and social partners. The learnership system must be responsive to an economic or social need, whether it be immediately apparent or a tangible possibility in the future, and will be accessible to people in formal employment, in pre-employment as well as for target groups.

3. Employment Services

(elaborated in Chapter 5)

The traditional model of guidance and placement which focused on matching workers and jobs is being expanded. The new Employment Services will provide advice to people on a range of support services available to them; assist with social plan measures in the event of mass retrenchments; assist vulnerable groups to acquire basic capabilities for accessing the labour market; direct individuals to job opportunities; and inform employers of available skilled people and assist others to enter self employment activities.

4. Enhancing Provision

(elaborated in Chapter 6)

Past mechanisms for the disbursement of public funds to providers of training have contained numerous problems. As a result, it is necessary to formulate new approaches to the planning, management, funding and evaluation of programmes that are publicly financed. The focus here is specifically on new public funding procedures relating to private training providers, industry training centres, non-governmental organisations, the Regional Training Centres and the Training Trusts. The mechanisms adopted aim to achieve high quality provision through a system which is responsive, cost-effective and accountable. Proposals for competitive tendering of training contracts are described together with measures to assist providers to improve the quality of learning programmes.

5. Skills Development Intermediaries and National Coordination

(elaborated in Chapter 7)

5.1 Sectoral Intermediaries

The absence of effective mechanisms for developing industry based training strategies and linking education and training provision to work, has been a central feature of our poor performance in the past. The proposals in this Green Paper motivate for a consolidated set of training intermediaries at sectoral level, which will assist communities, enterprises, industries and individuals when formulating or executing training plans, and assist in linking these plans to other related strategic objectives. They will also facilitate access to government subsidies where available. Local Employment Services Centres will coordinate with sectoral intermediaries to support active labour market programmes.

5.2 National Coordination

A serious improvement in the country's training performance requires a coherent system within which the constituent parts of the current skills development system can begin articulating with each other and with industry and commerce, and be guided by a clear national Skills Development Strategy. The National Qualifications Framework goes a long way in supporting this, but there remains no national mechanism to facilitate the links between education and training and the labour market. To achieve this it is proposed that the National Training Board be restructured to form a National Skills Authority. This body, together with the Department of Labour, will assist the Minister of Labour to develop a national skills development strategy for the country, which will determine skills priorities for the future, promote more effective investments in education and training, evaluate education and training achievements against national targets, and assist all role-players to develop best practice approaches to skills development. Such an Authority, consisting of all key role-players, should become the champion for skills development in the country.

6 The Funding of Skills Development

(elaborated in Chapter 8)

The demands on the education and training system are large and diverse and must be addressed within the context of a severe constraint on the availability of government resources. An effective response requires a funding partnership between government, the private sector and individuals. This is a key issue around which agreement with the social partners will need to be achieved. In this Green Paper the Department of Labour puts forward its proposal for funding the new strategy, which includes a levy-grant system with new criteria and procedures for the collection and disbursement of funds, as well as a National Skills Fund.

FINALISATION OF POLICY AND IMPLEMENTATION OF THE STRATEGY

Public and private stakeholders have already been involved in the development of the draft strategy through many meetings and workshops consisting of representatives from the constituencies on the National Training Board and Industry Training Boards. Further consultation and negotiation in Nedlac is required for agreement to be reached on the institutional and funding proposals. New skills development legislation is envisaged for 1997 and will replace the current Manpower Training Act and Career Guidance and Placement Act.

However, in anticipation of these legislative changes, and given the wide range of consultation that has already taken place and the extensive agreements that already exist, an initial implementation plan has been developed. The plan aims to achieve the following key results over four developmental phases (system design, capacity building, pilot phase, implementation phase):

The donor community have been approached to assist with projects in the first three phases.